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There isn't anyone who's happy about the idea of being in a situation where an insurance claim needs filling. Mortgage insurance is a money term you need to understand. Private mortgage insurance is sometimes added on to a mortgage payment so the lender can be sure the home is insurned. Private mortgage insurance is an insurance that is required on any conventional loan where less than 20 percent of the sale price is paid at closing of the loan. Private mortgage insurance provides protection to a lender in case you default on your home loan.

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It's a common saying that buying a home may be one of the biggest — if not the biggest — financial decisions you'll make in your lifetime.

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